April 23, 2015
The Bureau of Internal Revenue (BIR) has increased the zonal value of real estate properties in selected areas in Metro Manila and elsewhere to hike and collect the right amount of capital gains tax (CGT) and documentary stamp tax (DST).
Finance Secretary Cesar Purisima approved the recommendation of BIR Commissioner Kim. S. Jacinto-Henares to adjust the value of properties to a more realistic level.
They included properties located in Quezon City, San Juan, Rizal province as well as those in certain areas in Mindanao.
BIR insiders described the adjustment as timely since the last zonal valuation update was made 10 to 15 years ago, especially those in the provinces.
Revenue regional officials together with local assessors, treasurers, independent appraisers as well as landowners and developers decide on how much the zonal value should be hike.
It takes years to come out with the new schedule because of opposition by land owners and developers who will be required to remit more taxes when they dispose these assets.
Records showed the BIR collected in 2013 more than P3 billion in CGT and DST which rates are 6 percent and 1.5 percent, respectively, based on the selling price of the property.
The Tax Reform Act authorizes the BIR commissioner to divide the country into different zones to determine the fair market value of real properties in each locality.